Image Source: Dhanuka Agritech Ltd.

In an exclusive interview, M.K. Dhanuka, Chairman of Dhanuka Agritech Limited, outlines how India is fast emerging as a global agrochemical export powerhouse, propelled by the China+1 strategy and strong domestic manufacturing capabilities. He highlights growing demand from key markets like Latin America, Southeast Asia, and Africa, where Indian firms are aligning through localized formulations, global product registrations, and sustainable innovations. The industry is actively addressing regulatory hurdles and residue norms by investing in green chemistry, eco-friendly products, and robust compliance systems. Government initiatives such as Make in India, chemical parks, and streamlined approvals are significantly enhancing India’s global competitiveness. While innovation is gaining momentum, Dhanuka emphasizes that addressing regulatory bottlenecks and scaling advanced R&D will be crucial for India’s transition from cost leader to global innovation hub in agrochemicals.

What factors are driving India’s emergence as an agrochemical exporter, especially in the post-China+1 context?

India’s rising status as an important agrochemical export nation is driven by a combination of strategic and structural drivers, particularly in the post-China+1 scenario. Rising global interest in supply chain resilience has led various countries to diversify sources, and India has been a first-best choice alternative based on its strong manufacturing capabilities and cost advantage. India boasts a robust ecosystem of technically qualified professionals, established clusters of chemical manufacturing, and an increasing pool of R&D infrastructure. Supportive government policies, such as PLI schemes and streamlined regulatory processes, have also further improved export potential. India’s capability to provide high-quality generic agrochemicals at competitive prices has also been a significant driver. Further, increased investment in backwards integration and green practices has further enabled the country to get its feet on the ground in international markets. As global players aim to de-risk China dependence, India’s reliability, scale, and innovation potential make it an attractive option in the international agrochemical supply chain.

Which global markets are showing the strongest demand for Indian agrochemicals, and how are companies aligning their strategies accordingly?

Latin America, Southeast Asia, and Africa are becoming important markets with high demand for Indian agrochemicals. Brazil, Vietnam, and Japan are experiencing increased farming activities, which bodes well for demand for low-cost and efficient crop protection products. Indian agrochemical firms are adjusting plans by embracing product approvals in these markets, reformulating for local crops, and enhancing distribution networks. There is also increased focus on sustainable products and compliance with international quality levels in order to meet regulations. In addition, companies are investing in local alliances and research in the field to comprehend local needs in depth. These acts enable them to remain flexible, relevant, and competitive in accessing growth opportunities in varied and evolving global agri-markets.

How is the Indian industry addressing challenges like regulatory approvals, sustainability norms, and global residue limits?

The Indian agrochemical industry is aggressively addressing regulatory approvals, sustainability needs, and international residue levels through an integrated approach. Companies are building regulatory strengths to accelerate international registration and meet shifting global standards. Research and development expenditures are directed toward creating environmentally friendly, low-residue products meeting the stringent Maximum Residue Levels (MRLs) required by importing nations. Coordination with international consultants and domestic regulators is assisting in the streamlining of data generation and submission processes. Furthermore, the industry is embracing sustainable manufacturing practices, such as zero-liquid discharge systems and green chemistry concepts. By meeting global standards and emphasising innovation and compliance, Indian agrochemical companies are significantly enhancing their credibility and competitiveness in international markets.

What role is government policy—such as Make in India or chemical parks—playing in supporting export competitiveness?

Government policies like Make in India and setting up chemical parks are crucial in making the agrochemicals industry of India more export competitive. The schemes drive local manufacturing, reduce dependence on imports, and encourage investment in infrastructure and technology. Chemical parks offer integrated facilities, better logistics, and common utilities, all resulting in lower production costs while conforming to the environment. Furthermore, rapid clearance schemes and ease of product registrations in focus markets also enhance market access. Moreover, greater emphasis on innovation, sustainability, and skill development enables Indian companies to achieve global standards. Collectively, these schemes are making India a reliable and competitive agrochemical exporter to the global market.

Do you see India evolving from a cost-effective supplier to a global innovation hub in agrochemicals over the next 5 years? Current challenges

India is gradually evolving from just a low-cost agrochemical producer to an emerging global innovation hub. With increased research and development expenditure, international technology partnerships, and a growing pool of talented scientists, Indian firms are developing innovative formulations and green solutions for crop protection. The trend is likely to become even more robust over the next five years, with government encouragement and focus on patented products. Weaknesses, however, lie in the shape of prolonged regulatory clearance procedures, poor capital investment in cutting-edge research, and the absence of industry-academia partnerships. Overcoming these areas of weakness will be critical to driving innovation. Amidst such weaknesses, India’s potential to be a green and affordable agrochemical innovation leader is making international waves and gaining momentum.